Two-Way Quote

Posted in Finance, Accounting and Economics Terms, Total Reads: 376

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Definition: Two-Way Quote

Two way quote is a type of quote which gives both: the ask price and the bid price of a security, suggesting the would-be traders of the securities’ current price at which the traders can buy/sell the securities. The two-way quote also reveals the spread between ask and the bid, giving the traders a hint about the current liquidity of the security (a smaller spread would suggest about more liquidity).